Imagined myself in fear (7)
I believe the answer is:
dreamed
'imagined' is the definition.
(dreaming is a kind of imagining)
'myself in fear' is the wordplay.
'myself' becomes 'me'.
'in' indicates putting letters inside.
'fear' becomes 'dread' (synonyms).
'me' going inside 'dread' is 'DREAMED'.
(Other definitions for dreamed that I've seen before include "Had a vision" , "suffered delusions" , "Had fantasies" , "Fantasised" , "Imagined" .)